What is ESG reporting?
ESG stands for Environmental, Social, and Governance, and ESG reporting is defined as “the disclosure of environmental, social and corporate governance data. As with all disclosures, its purpose is to shed light on a company’s ESG activities while improving investor transparency and inspiring other organizations to do the same”.
ESG reports commonly cover each topic area (environmental, social and labor, and governance), and for each, include information on:
- Assessed risks
- Actual impacts
- Quantitative and qualitative assessment of the company’s ESG activities (for instance, any policies, programs or actions that you have implemented to improve your impacts).
There are many different ESG reporting frameworks in use, but the most common frameworks are the Global Reporting Initiative (GRI), the Task Force on Climate-related Financial Disclosures (TCFD), the Sustainability Accounting Standards Board (SASB), and the United Nations (U.N.) Sustainable Development Goals (SDGs).
Why is ESG reporting important?
Historically, ESG reporting has been voluntary. However new legislation will make comprehensive ESG reporting mandatory for larger companies.
For example, the EU Corporate Sustainability Reporting Directive (CSRD) will require companies to set targets and disclose progress across 10 topical areas (from biodiversity to marine impacts to climate change) — with data expected on 2024 impacts across multiple tiers of their value chain.
For facilities and manufacturers, this means that your brand partners may soon be requesting more data from you across a much wider range of sustainability topics.
How can I use Worldly data for ESG reporting?
The Higg Index tools, available on Worldly, can help your business collect value chain data to disclose impacts for ESG reporting.
- Como marca, utilice el Higg Facility Environmental Module (FEM) y el Facility Social and Labor Module (FSLM) para establecer la infraestructura de compromiso de la cadena de suministro necesaria para identificar, monitorear y remediar daños reales y potenciales, así como para recopilar los datos principales de fabricación necesarios para demostrar el progreso hacia los objetivos;
- Como Instalación, utiliza el Facility Environmental Module (FEM) para cuantificar tus impactos ambientales y mapear tus prácticas para mitigar riesgos y reducir impactos. Utiliza el Facility Social and Labor Module (FSLM) para hacer seguimiento de tus impactos sociales, así como de las políticas y prácticas implementadas para mejorar el bienestar de las personas trabajadoras.
- Whether you are a facility or brand, you can use the Higg MSI (Materials Sustainability Index) and Higg PM (Product Module) to measure the footprint of your products and analyze where the environmental hotspots are across your product’s lifecycle.
- Por último, el Higg Brand and Retail Module (BRM) ofrece orientación de contenido específica para el sector para apoyar a las empresas en sus divulgaciones y puede utilizarse como una lista de verificación para la preparación ante regulaciones como CSRD.
En resumen, Worldly le ayuda a recopilar los datos que necesita como insumo para determinar los temas de sostenibilidad relevantes; establecer objetivos y metas para la mejora del impacto; y reportar su progreso en las áreas Ambiental y Social de ESG.
Las capacidades de la plataforma Worldly no están diseñadas para la redacción de informes en sí, ni como una herramienta de aseguramiento del cumplimiento para regulaciones específicas.